§ Mr. RedmondTo ask the Chancellor of the Exchequer (1) what investment incentives he intends to introduce to stop United Kingdom shipping companies flagging abroad; and if he will make a statement;
(2) what measures he intends to introduce to enable United Kingdom shipping companies to maintain their merchant fleets and crews.
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§ Mr. LilleyWe have already introduced a number of measures to help United Kingdom shipping companies in recent years. These have included the relaxation of the rules governing a seafarer's eligibility for the 100 per cent. foreign earnings deduction, and the extension of the business expansion scheme to ship chartering companies.
§ Mr. RedmondTo ask the Chancellor of the Exchequer if he will extend for United Kingdom shipping companies, the maximum charter period permitted for BES ship schemes to five years.
§ Mr. LilleyMy right hon. Friend has no plans to do so.
§ Mr. RedmondTo ask the Chancellor of the Exchequer if he will improve the terms for United Kingdom shipping companies, for roll-over relief for corporation tax on profits from ship sales.
§ Mr. LilleyMy right hon. Friend has no plans to do so. When a ship is sold, the present system ensures that tax relief is recovered where the depreciation allowed exceeds that actually incurred over the period of ownership.
§ Mr. RedmondTo ask the Chancellor of the Exchequer if he will reinstate for United Kingdom shipping companies for a period of five years, free depreciation, 100 per cent. ship allowance, against investment in new and second-hand ships.
§ Mr. LilleyMy right hon. Friend has no plans to do so. The present capital allowances regime is already more generous for ships than commercial depreciation.